Iowa Long Term Care Costs, Partnership Information & Quotes
It's not where or how they should acquire care that worries residents of Iowa but how to pay for the services they might need in the future because the costs of in-home care, assisted living, and nursing homes among others are rising so fast in their area.
To be able to receive assistance with their activities of daily living from a home health aide, the state's in-home care recipients are paying $21 per hour which is tantamount to an annual spending of $47,476. Meanwhile, those who are receiving 24-hour skilled care in a nursing facility are spending $167 daily which can be translated into $60,773 annually.
The Iowa Long Term Care Insurance Partnership Program was initiated to allow the state residents to acquire and pay for a long term care insurance policy and be eligible for Medicaid, without having to spend all their assets and investments. It is a partnership between Medicaid and private long term care insurance companies.
Iowa is an authorized long term care Partnership Program state under the federal Deficit Reduction Act of 2005. It has a dollar-for-dollar asset protection wherein for every dollar that your long term care insurance Partnership policy pays out in benefits, a dollar of your assets is protected just in case you would need to apply for a Medicaid long term care service.
Below is the table of Iowa's 2012 median costs of care data by Genworth Financial:
|Region||Homemaker Services Hourly Rate
|Home Health Aide Hourly Rate
|Assisted Living Facility Monthly Rate
|Nursing Home Daily Rate
|Nursing Home Daily Rate
|Rest of State||$19||$21||$2,433||$144||$157|
Features of Partnership Long Term Care Insurance in Iowa
The following remain necessary features of a Long Term Care Insurance Partnership Program of every participating state:
- Must have a minimum daily benefit amount
- Must have a 3-year minimum benefit period
- Must have inflation protection at younger ages.
Here below are additional benefits that Iowans may receive from an Iowa Partnership qualified policy:
- maximum daily or monthly benefit
- the right to choose their elimination or waiting period
- comprehensive coverage that includes home and community-based care and nursing home coverage
- liberty to choose benefit period
- premium discounts
About Inflation Protection in Iowa
Inflation protection is an important feature of long term care insurance because it keeps pace with the increased cost of expenses and progresses with inflation by increasing the daily or monthly benefit amount of the policy.
- Age 61 below - Automatic compound inflation of at least 5%
- Age 61-75 - Automatic annual inflationof at least 5% (simple or compound)
- Age 76 and beyond - No inflation required (may be purchased by choice)
Iowa Reciprocity Standards
As part of the reciprocity standards of the states that have Long Term Care Insurance Partnership Program, these states will accommodate and give reciprocity to an Iowan who transfers to their state. This would make the policy holder qualified for asset protection.
The following are the reciprocity standards as published on the September 2, 2008 issue of Federal Register:
- 1. Medicaid applicants who purchased an LTC policy in a state participating in the reciprocal agreement and who has received benefits under their private LTC policy will receive an asset disregard in an amount equal to the benefits received (dollar for dollar).
- 2. The asset disregard procedure and calculations must be uniform among the states participating in the reciprocal agreement.
- 3. Amounts equal to the benefits received under the LTC policy will be exempt from Medicaid estate recovery.
- 4. If a person moves from the state in which his or her partnership policy was issued and later applies for Medicaid in another state participating in the agreement where they are determined to be eligible for Medicaid using the asset disregard, the asset disregard may not be revoked upon eligibility redetermination if the state subsequently withdraws from the reciprocal agreement.
The above reciprocity standards only apply to the asset disregard, effective on January 1, 2009. Applicants may only be qualified for the asset disregard eligibility if the state wherein they purchased their LTC policy and the state where they apply for Medicaid both participate with the reciprocal standards.
Iowa Medicaid Eligibility
Also known as title 19, Medicaid caters to those persons who have limited income and resources and help them with their health and medical services and needs. This program is funded by federal and state government and is managed by the Iowa Department of Human Services (DHS).
For a person to be qualified for Medicaid, they would have to comply with certain income and resource limits and must also provide financial and non-financial requirements such as proofs of income and of other financial resources, Iowa proof of residency and citizenship, and a Social Security number.
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